Under the Real Estate Procedures Act of 1974, what is the uniform settlement document received by all parties in certain real estate transactions?

The uniform settlement document referred to in the Real Estate Procedures Act of 1974 is the Closing Disclosure. This document serves a vital purpose in real estate transactions; it provides a comprehensive overview of the closing costs and details of the mortgage loan. The Closing Disclosure must be provided to borrowers at least three business days before closing, allowing them to review the terms and costs associated with their loan.

This document is designed to ensure transparency in the lending process, enabling borrowers to understand their financial obligations better and compare the costs of the loan with other financing options. It consolidates all the necessary information related to the transaction, including loan terms, projected monthly payments, and closing costs, which are critical for parties involved in the real estate transaction to make informed decisions.

Other options, like Loan Estimate, RESPA-4, and RESPA-8, are related to the lending process or disclosures but do not serve the same purpose as the Closing Disclosure. The Loan Estimate, for example, is provided early in the mortgage application process and outlines initial loan costs, while RESPA-4 and RESPA-8 refer to specific forms or documents that do not function as the final settlement document. Therefore, the Closing Disclosure is the correct uniform settlement document under the Real Estate